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Troubled computer company EDS is tipped to take “a big slice” of the multi-billion-pound ID cards contract to produce and supply biometric cards for every Briton by 2008. The US IT contractor is reportedly engaging in behind the scenes negotiation with officials at the Home Office charged with delivering one of the biggest government technology deals ever. Disclosures obtained by The Business and The Observer suggest ministers are alarmed over the likely selection of EDS, following IT disasters at the Inland Revenue, the Department for Work and Pensions and the Child Support Agency. Despite past performance, executives at Electronic Data Systems say they are confident the company can bounce back to manage the biometric cards programme after winning similar “smart card” schemes with London Underground, the US government and the Ugandan government. “ID cards are a competency of EDS,” said Doug Hoover, managing director, EDS UK. “We feel that we have some solutions and some capabilities. It is safe to say we would look at it.” But just last week the Texan-based contractor was blamed by two independent reports for fuelling an overpayment crisis of £2bn at the Inland Revenue affecting low-income families; £600 million of which was caused by computer errors. The world’s second largest computer firm now faces legal action by its former employer in the High Courts, should discussions by the Revenue and EDS fail to materialise a payback solution the Treasury deems suitable. EDS recently won the ‘largest ever IT contract’ with the Ministry of Defence worth £4bn, but industry and ministers said the move to ponder its suitability for the controversial ID card scheme is “extraordinary.” Shadow home secretary David Davis said: “It is extraordinary that the Government is considering letting the company responsible for the tax credits scandal near what it claims to be a crucial scheme for the security of British citizens.” Davis, a staunch opponent of the Identity Cards Bill, found support from Left-leaning Ian Gibson, Labour MP, former chair of the all party science and technology committee. He said: “EDS is not a deluxe company and has been associated with bad performance in the past. I would like to see their references. It could all end in tears.” Adding his doubts over whether the scheme is “workable,” some industry observers answered the politicians’ bemusement, by pointing out only a few technology suppliers are capable of implementing the work. Another commentator said the tendering process of the contract would be hotly contested with EDS expected to lead a group of companies towards a pathway of successful delivery. A similar arrangement is now in place at the Inland Revenue in the appointment of Cap Gemini Ernst & Young and Fujitsu Services, after EDS’s departure. “On the ID cards contract, there is unlikely to be a single ‘big bang’ where the Home Secretary gets on stage and says, ‘And the winner is …’” The source continued: “Instead, we expect the work to be split up or given to a consortium. EDS expects to take a big slice of the business.” The Home Office has responded to the predictions, saying that enabling legislation is needed before the procurement process begins, adding anybody claiming a role is “engaging in speculation.” The legislation for the ID cards Bill is due for its second reading in the House of Commons on Tuesday, when the Government is braced for a Union-endorsed backbench rebellion. The news comes amid concern over the accuracy and readiness of biometric technology, while others remain concerned that the price for ID cards will eventually be £220 per Briton, double the figure claimed by the Government. Jun 27, 2005 Email this article Printer friendly page Previous Page
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